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How to wring the most business value from a personal loan

When it comes to starting your business, not all credit is created equal. A recent study found that companies that borrow under the business name have higher revenues and longer survival rates than those that take out debt in the name of the business owner.

But using personal credit to fund your business is not uncommon — the same study found that 55% of companies reviewed relied on it to finance their start-up.

“Before your business has credit of its own, it's normal to use a personal loan,” says small-business growth expert Evan Horowitz. “I've self-funded most of my businesses, putting my own resources and credit on the line — then I hustle to make it happen.”

Business loans may have benefits over personal loans, but there are ways to make personal loans pay off.